Capitol Recap

The following offers education-related highlights of the recent
legislative sessions. The enrollment figures are based on estimated
fall 2001 data reported by the National Center for Education Statistics
for prekindergarten through 12th grade in public elementary and
secondary schools. The figures for precollegiate education spending
include money for state education administration, but not federal,
flow-through dollars, unless otherwise noted.

Kansas

Schools Ride Out Storm,
But Fear Worse Weather

Although this year's fiscal crisis ripped through the Kansas
Statehouse like a tornado, lawmakers protected funding for pre-K-12
education at the cost of many other programs. Still, Gov. Bill Graves
warned there might not be enough money in state coffers to make good on
the legislature's promises when it's time to pay the schools.

Republican

Senate:
10 Democrats
30 Republicans

House:
46 Democrats
79 Republicans

Enrollment:
468,000

According to the current financial forecast for Kansas, the education
department will receive $2.38 billion in fiscal 2003, part of a $9.15
billion state budget. That is a 4 percent hike from the 2002 fiscal
year, in which the department received $2.37 billion.

The new budget provides a $20-per-pupil spending increaseup from
$3,870. Analysts say that won't even cover inflation.

"That's a very, very small increase as a percentage comparable to
the consumer price index," said Mark Desetti, a governmental-relations
specialist with the Kansas National Education Association. "As a
result, a lot of district budgets are in trouble."

After years of thin budgets, schools are now being forced to cut
student programs, busing, and teaching positions, he said.

And Gov. Graves has warned the situation may get worse. If revenues
fall short, aid payments to schools may be delayed.

Meanwhile, school employees in 14 of the state's 303 districts
continue to have no health insurance, as their employers can't afford
it, Mr. Desetti noted. Although it was discussed by lawmakers, no bills
were introduced on the subject.

—Julie Blair

Kentucky

Patton Sets K-12 Budget
After Legislative Deadlock

The 2002 session of the Kentucky legislature will be remembered by
educators more for what it didn't do than what it did do.

Democrat

Senate:
18 Democrats
20 Republicans

House:
66 Democrats
34 Republicans

Enrollment:
630,000

Legislators adjourned in April without adopting a two-year budget
slated to pass this year. The state budget usually accounts for about
60 percent of total K-12 spending in the Bluegrass State.

But, just before the fiscal year began July 1, Gov. Paul E. Patton
used his executive power to establish a $2.4 billion K-12 budget in the
2002-03 school year.

The level-funded plan is enough to give teachers a 2.7 percent
salary increase. Meanwhile, Gov. Patton urged districts to use local
funding to give the same raise to janitors, bus drivers, and other
employees who are not state-certified. Most school boards are adopting
spending plans that give the 2.7 percent raise to all employees,
according to Brad Hughes, the spokesman for the Kentucky School Boards
Association.

The overall state spending plan is similar to the one the governor
sent to the legislature at the start of its session.

Budget talks, however, broke down between Mr. Patton, the
Democratic-led House, and the Republican Senate majority over the
future of state financing of the next gubernatorial election. Mr.
Patton and other Democrats are proposing that state dollars continue to
supplement candidates' private spending, but Republicans are trying to
eliminate public money from the 2003 campaign.

With Mr. Patton's budget, many districts are going to have enough
money to retain school employees that they had slated for layoffs in
worst-case budget scenarios, Mr. Hughes said.

But the governor's budget actions are based on his interpretation of
law, not legal precedent, Mr. Hughes added. The governor's invocation
of executive power may be challenged in court, which could put school
officials in a lurch if funding is cut. "We're walking into a dark room
with sunglasses on," he said.

Lawmakers passed few laws that will impact school policy.

In one new law, six districts will be allowed to experiment with
differentiated pay scales for teachers. The districts will be allowed
to abandon traditional salary schedules—based on experience and
education levels—and reward teachers for performance or pay extra
to lure candidates for high-need positions, such as in mathematics.

The new law also promises teachers pay raises that are equivalent to
those of state employees.

A separate law will require every district to craft a plan to
address the achievement gap between minority and white students. If
schools fail to meet their targets, local officials will be required to
allocate professional-development aid in ways designed to reduce the
gap.

—David J. Hoff

Missouri

Accountability Plan,
Aid Formula Adopted

Reflecting the difficult economic climate of most states, Gov. Bob
Holden signed a budget for the coming fiscal year that is leaner than
Missouri's previous spending plan.

Democrat

Senate:
16 Democrats
18 Republicans

House:
87 Democrats
75 Republicans

Enrollment:
893,000

The $18.9 billion budget for fiscal 2003 is $372.9 million smaller than
the 2002 budget, a drop of 2 percent, but still offers an increase for
public schools. It falls short, however, of meeting the full funding
levels called for by the state formula for determining each school's
base funding.

Lawmakers also passed a new accountability program, as well as a
measure to help balance the state budget and finance schools.

The law revises the formula that determines the base funding for
elementary and secondary schools. Instead of annual reviews of local
tax valuations and other factors that determine per- pupil state aid,
the new formula will average those amounts over two years. That means
there will no longer be yearly state funding spikes that, in the past,
have been necessary to reflect shifting tax values.

Although lawmakers provided a $135 million increase in the basic
school aid formula, bringing total K-12 funding to $4.2 billion next
year, that total will fall short of "fully funding" the formula, which
would have required another $175 million, said Chris Kelly, a
spokeswoman for Gov. Holden.

A new keno lottery game is expected to raise nearly $21 million for
schools. Overall K-12 funding for the new fiscal year will rise by $135
million, or nearly 6 percent, above last year's amount.

Mr. Holden scored a big win with the passage of his accountability
plan, which will hold low-performing schools to higher expectations on
state exams and in other areas of student achievement. The law will
exempt high-achieving schools from some rules.

Under the plan, teachers and administrators at the low-performing
schools could be required to receive more training. The poorly
performing schools will have to submit improvement plans. They also
will have to draft plans for helping the students with low test
scores.

—Lisa Fine

Vermont

Heated School Aid Debate
Yields No Compromise

For the second year, Vermont's Democratic Senate and Republican
House tussled over the state's school finance law but failed to reach a
compromise on a change.

Democrat

Senate:
16 Democrats
14 Republicans

House:
63 Democrats
82 Republicans
5 Independents

Enrollment:
100,000

Representatives of wealthy towns want to substantially ease the effects
on their schools of the 1997 law that abolished local property taxes
and set up a statewide property tax as part of a plan to equalize K-12
education funding. As a result, prosperous resort communities saw their
property taxes increase, but had less to spend on their schools.

At issue has been the "sharing pool" set up by the finance law,
known as Act 60, which requires towns that have raised additional money
through local taxes or voluntary contributions to share the proceeds
with poorer districts. The Senate insisted on a bill that would have
scaled back or done away with the pool, but the House was willing to
provide only short-term relief.

The legislature made a concession for school construction, allowing
districts to raise bond money through tax increases that would not be
subject to the sharing pool for the coming three years. That measure
became law just before the legislators adjourned June 13.

Another Republican House measure that failed in the Senate would
have greatly expanded public school choice by allowing K-8 students to
attend any school in the state. "The state grant would follow the
student to the new school," said Rep. Richard C. Marron, who backed the
idea.

Vermont has a limited program that allows high schoolers in some
areas to select among schools and programs regionally. State aid
doesn't directly follow a student, though.

Finally, an attempt by Commissioner of Education Raymond McNulty to
require that children be at least 5 before they start kindergarten
stalled in the face of opposition from one local superintendent who
argued that, with few early-childhood programs in his area, allowing
4-year-olds to attend kindergarten was better than failing to give them
any classroom experience.

Andrew J. Snyder, the chief lobbyist for the Vermont education
department, predicted the bill will be back next year as part of an
early-childhood measure.

In spite of a declining economy and Gov. Howard Dean's bid to keep
the state's per-pupil allotment at the previous level, legislators
increased that amount by 2.4 percent, to $5,566.

All told, the state budgeted $601.2 million from its education fund
and $255 million from its general fund for education. Revenue
shortfalls could mean cuts. Lawmakers gave Mr. Dean the authority to
make emergency cuts if a July 15 forecast predicts state revenue
drops.

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